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2/1/2011



Rail News: Rail Industry Trends

FedEx to use rail intermodal service for first time in 40-year history, NS says


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Yesterday, FedEx Freight Corp. announced it's launching a new unified less-than-truckload (LTL) network, and offering new FedEx Freight® Priority and FedEx Freight® Economy LTL services. The changes are designed to meet the needs of today’s LTL shippers, according to the FedEx Corp. subsidiary.

The new services will involve rail intermodal, according to Norfolk Southern Railway. FedEx recently selected the Class I as its preferred eastern rail carrier for the new domestic services, said NS Executive Vice President and Chief Marketing Officer Donald during a fourth-quarter earnings conference on Jan. 25.

“FedEx will systematically use rail intermodal service for the first time in its nearly 40-year history when it rolls out [the] revamped less-than-truckload operation,” he said.

FedEx Freight Priority will be targeted at LTL shippers seeking reliable, time-sensitive delivery, while FedEx Freight Economy will be aimed at LTL shippers seeking "more economy" and reliable delivery, according to FedEx Freight.

“Our streamlined network is engineered to deliver excellent service to customers, while allowing FedEx Freight to maximize existing capacity and support future growth,” said FedEx Freight President and Chief Executive Officer William Logue in a prepared statement.


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